Source: Forestry Department (1998 and earlier). Note: fuelwood from indigenous forest is recorded in stacked cubic metres from 1986 to 1990; sawnwood is recorded in product volume from 1986 to 1992; and posts and poles are recorded in linear metres from 1996 to 1998 except for the FPL figure in 1997.

The following figures show the spreadsheets containing the data used in the calculation of delivered roundwood cost for a “typical” forest harvesting operation. These follow standard production cost methodologies as set out in FAO (1977) and the “Caterpillar Handbook” (Caterpillar, 1996). Further details about how the model works can be found in Whiteman (1999a).

Figure 26 Prices and consumption of consumable items used in the forest harvesting cost model

The following figures and tables show the spreadsheets containing the data used in the calculation of profitability and economic rent for an “average” sawmill. This follows the discounted cash-flow approach, which is a standard accounting and investment appraisal methodology used in industry worldwide. The cash-flows produced by the model are given in the tables at the end of this appendix. Further details about how the model works can be found in Scotland and Whiteman (1997).

Figure 32 Miscellaneous details and roundwood costs used in the forest industry model

Figure 33 Capital and manufacturing costs used in the forest industry model